Three weeks ago, when looking at the staggering amount of cash piled up at the US Treasury thanks to a historic T-Bill issuance spree over the past three months, we said that it's just a matter of if not when Trump gives the green light to unleash a historic spending spree to put as much of this record $1.8 trillion in the hands of American people and, more importantly, voters ahead of the November 3 election:
Democrats are pushing for a USD3 trillion package while the White House only wants USD1 trillion, and focused on a payroll tax cut rather than an extension to the USD600 weekly extension to unemployment benefits. The clock is ticking given we are days away from income supplements drying up at a time when millions are jobless and one in three Americans is not making a full rent or mortgage payment. Political speed is of the essence.
The US Treasury is of course sitting on a cash balance of USD1.8 trillion at this point. I don't recall any taxes being paid to raise that sum – almost as if MMT were already a thing. (On which note, please see this report.) One wonders when this massive fiscal firepower is going to be unleashed; because surely no president wants to leave USD1.8 trillion to a successor?